Jeffrey M. Rosenblum, P.C.
A Fresh Start

Long Island Bankruptcy Law Blog

Common financial challenges faced in today's world

It's not hard for people to find themselves in a heap of debt these days. Not much has really changed from the past as credit cards have been around for decades. If anything, debt has been easier to accrue ever since the dawn of online shopping. Here are some of the common financial challenges people are faced with in the world today.

Living for today is a big financial problem that too many people face. This is when non-retired individuals do not have retirement savings in place. This can include the lack of a 401(k), pension, or other type of savings account. Living for today is never a good idea, especially since you never know when you might need a chunk of money for an emergency.

How do I know which chapter of bankruptcy is right for me?

If you find yourself unable to manage your debt on your own, you may feel that there is no way out of your current financial situation. In reality, there are options available to you, including the option of filing for consumer bankruptcy. Making the decision to file could be an important step for your future, but the next step is to decide which chapter is best for your individual situation.

Most New York consumers will file for either Chapter 7 or Chapter 13 bankruptcy. There are certain eligibility requirements applicants will have to meet, and you may not qualify for your first choice. Regardless, there are options available to you, and it is beneficial to seek a complete case evaluation in order to understand what they may be.

Determining if bankruptcy is the right move

Many people face financial issues on a daily basis. Some of those people know exactly what they are going to do to get out of trouble. Others have no idea where to turn. Not everyone has the ability to work with a financial advisor or other professional when it comes to making such major life decisions. Today, we will discuss how to determine if bankruptcy is the right move for you in Long Island.

There are three major financial situations that cause people to file for bankruptcy these days. Those three situations include divorce, unemployment and the inability to pay for medical debt that is uninsured. When you combine all three of these situations, you come up to a statistic that is mindblowing; they account for 90 percent of all United States bankruptcy filings.

Could my bankruptcy trigger a tax audit?

Few things in life cause as much anxiety as notification that you are being audited by the Internal Revenue Service (IRS). There are certainly red flags that can trigger an audit, however, and some of those include:

  • Getting paid in cash
  • Working in an industry where the bulk of your earnings comes from tips
  • Owning a business, as bookkeeping errors are common

There is no known policy in force at this time with the IRS that would indicate those who file for bankruptcy are specifically targeted for tax audits. Given the limitations of the IRS personnel and the financial resources devoted to audits in comparison with the millions of taxpayers who file for bankruptcy protection, it's mathematically impossible to audit that many returns.

Explaining the revocation of a debt discharge

Going through a bankruptcy filing is stressful. When you realize that you need to file for Chapter 13 bankruptcy in Long Island, you should do so with the help of an experienced bankruptcy law attorney. You will want help when filing and navigating the entire process, so you can have your questions answered and know what to expect. Today, we will explain the revocation of a debt discharge and how it affects you.

It is possible for a discharged debt to be revoked. It can be done so if a creditor, trustee or United States trustee requests that the court revoke the debt based on allegations. The allegations that can be levied against the debtor include any of the following:

  • The discharged debt was obtained using fraud
  • The debtor did not disclose that he or she acquired property that constituted property of a bankruptcy estate
  • The debtor committed an act that is outlined in the bankruptcy code known as an act of impropriety
  • The debtor did not explain a misstatement that was uncovered in an audit
  • The debtor did not provide the documents requested when the case was audited

How does a Chapter 13 bankruptcy work and is it right for me?

If you are one of the many New York residents who is financially struggling, you have likely started looking into what debt relief options are available to you. You have likely seen and heard advertisements for help that seem far too good to be true — and they probably are. Even though many people wish to avoid it, sometimes bankruptcy really is the best option.

There are two types of bankruptcy meant to help with personal finances: Chapter 7 and Chapter 13. A Chapter 13 bankruptcy is for those individuals who still have income, just not enough to get them out of debt right away.

Bankruptcy: A step toward financial freedom after crippling debt

Filing for bankruptcy is a huge decision for most people. The chances that you've agonized over this decision are great. In many cases, this is the only option that will allow you to get the financial relief that you need. We understand the position you are in and want to help you find the solution that will work for your needs.

When you are considering a bankruptcy petition, you need to determine which chapter to file. This is a huge deal because it impacts what happens after the bankruptcy. There are two primary forms of consumer bankruptcy. One is Chapter 7, which is known as liquidation bankruptcy. The other is Chapter 13, which is known as a working man's bankruptcy.

Tips for rebounding from a personal bankruptcy filing

Filing for personal bankruptcy never means that your life as you know it is over. In fact, it should be viewed as a new start for you and your family. Bankruptcy should not be viewed as a last-ditch effort. It also shouldn't be viewed as an embarrassment. You need to come to the realization that mistakes were made, learn from them and move forward. You can do so by using the tips outlined in this post for rebounding from a personal bankruptcy filing.

As mentioned earlier, you need to adopt the mindset that this is a fresh start for you. It is not the end. It is very far from the end. You need to look at the filing as a solution to a problem you had and not the actual problem. Bankruptcy should never be looked at as a problem.

Why would my bankruptcy filing be rejected?

If you've run into a host of financial problems and cannot find a way out, it's likely you are headed for a bankruptcy filing. Not every bankruptcy plan will be approved though. There are quite a few reasons why bankruptcy filings are denied by the court. So, what are those reasons? We will take a look at them in today's post.

One of the most common reasons why a bankruptcy filing is denied is because you fail to provide the right tax documents or do not show up for the meeting with your creditors. You must supply all of the required tax documents when filing for bankruptcy. You also must attend the meeting with your creditors. When filing bankruptcy under Chapter 13, you must provide the previous four year's worth of returns.

The quickest ways to liquidate assets

When people or businesses find themselves in a shortage of cash, they tend to liquidate their assets in an effort to fix their financial issues. The decision you will need to make when liquidating an asset is doing it quickly or doing it for the highest value. For the most part, if you liquidate an asset quickly, you will not get as much value for it.

If you need cash quick, the best assets to liquidate are stocks and bonds. These are by far the quickest assets to liquidate because they operate on an open market. You will have access to your cash within one to two business days when you liquidate these assets.